Govt centralises social gaming oversight under PROGA, limits TNOGA’s regulatory ambit?

The Centre’s notification of the Promotion and Regulation of Online Gaming Act, 2026 (PROGA), set to come into force on May 1, is poised to redraw the regulatory contours of India’s gaming industry by centralising oversight of social gaming and esports, while reinforcing a strict ban on online money games irrespective of whether they are classified as games of skill or chance.

In a decisive shift, the law removes regulatory ambiguity around real money gaming by effectively outlawing such formats across the country. At the same time, it delineates jurisdictional boundaries by leaving betting and gambling under the purview of state governments, even as it brings non-monetised gaming formats under a central authority.

The move has direct implications for state-level regulators such as the Tamil Nadu Online Gaming Authority, which had attempted in recent years to expand its oversight beyond real money gaming. Industry stakeholders said PROGA effectively curtails TNOGA’s ability to regulate social games, a segment that will now fall under the national-level Online Gaming Authority of India.

“The law creates a clear separation. States retain the power to determine what constitutes betting and gambling, but social games and esports are no longer within their regulatory reach,” said a policy expert tracking the sector, requesting anonymity. “This avoids regulatory fragmentation, which was becoming a serious concern for developers.”

TNOGA had previously sought to widen its scope. The authority convened consultations with gaming companies and industry bodies to examine whether the broader video gaming ecosystem should be brought under regulatory supervision. This triggered pushback from developers and publishers, who warned that excessive oversight could stifle innovation and disrupt India’s fast-growing gaming market.

The authority had notified regulations for “Real Money Games” in February 2024, while consciously excluding video games at the time. However, growing concerns around gaming addiction among minors and associated mental health risks had prompted a rethink within the state, raising the possibility of tighter controls on even non-monetised formats.

Clarifying the Centre’s position, S Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), said the distinction between skill and chance remains within the domain of states, particularly in the context of betting and gambling. “They (TNOGA) are more into whether a game is of skill or chance, and that is within the remits of state governments. Betting and gambling are within the powers of state governments,” he said.

However, industry executives argue that PROGA settles a key regulatory overlap by vesting authority over social gaming with the Centre. “We do not want to be regulated by multiple state authorities,” said a Tamil Nadu-based game developer, speaking on condition of anonymity. “With PROGA now notified, there is clarity that a central authority will oversee social games. State bodies should focus on curbing illegal betting platforms, which remain a major issue.”

Experts note that while the law tightens the noose around betting and gambling platforms, enforcement will continue to depend heavily on state machinery. “The Centre has drawn the lines, but the real challenge will be coordination,” said another industry analyst. “States will need to step up action against offshore betting operators and surrogate platforms that continue to target Indian users.”

For now, the industry appears to have welcomed the clarity offered by PROGA, particularly in shielding social gaming and esports from overlapping regulations. TNOGA has declined to comment on the development. 

At the same time, the blanket prohibition on real money gaming marks one of the most stringent policy interventions in the sector to date, signalling the government’s intent to prioritise consumer protection over industry expansion in high-risk segments.